Color Kinetics Inc B Case Study Solution and Analysis
NASCAR (National Association for Stock Cars And Truck Automobile Racing) is an organization carrying out series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Vehicle Racing. 2) Stock Cars And Truck Racing by NASCAR is the second biggest spectator sport, with highest number of sponsors. 1) The other sources of revenue for Color Kinetics Inc B Case Study Solution consists of; 10% of the total income from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist method. The building of Cars and truck of Tomorrow by NASCAR, with an objective of safety for the chauffeurs, brought various stress among the stakeholders of the sport.
The communication audit, performed in 2010, revealed that regardless of the reality that the organisation extremely rely on the interactions between its stakeholders, there was no identifiable company communication strategy. (
The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, absence of fan management strategy and absence of digital and social media of marketing.
Color Kinetics Inc B Case Study Solution viewers was highly devoted to the sport and the brands connected with the NASCAR, making it appealing for sponsors and corporate marketers.
The business is presently dealing with the problem of declining rates of attendance at racing tracks and rates of television viewers. This can put a substantial impact on its incomes from sponsors, media rights, and from other sources of income.
The business was rather successful till 2005 with its traditional marketing techniques, but quickly after 2005 the business begins facing numerous issues including decline of its fan base. A number of external as well as internal aspects are accountable for the decline. Internal elements consist of; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. The family system in America was changing resulting in reduction of impact of married male fan base over their youngsters. Along with it perceptions about vehicle was likewise altering with perceiving cars and truck a vehicle to reach at point B from point A, rather than as an enjoyable task. Other challenges for Color Kinetics Inc B Case Study Solution includes the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on. These all obstacles were tending the business to revise its marketing strategies.
NASCAR core competencies includes it has rights of determining guidelines as sanctioning body. Guidelines and guidelines relating to professional stock cars and truck racing are determined by NASCAR like if any team with required abilities and resources can get in into races by following guidelines and guidelines dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates since of greatest brand loyalty of fans towards brand names advertised by Color Kinetics Inc B Case Study Help.
Weak points of NASCAR includes its close culture which is non collaborative. Color Kinetics Inc B Case Study Help develops Vehicle of Tomorrow without collaboration so result is that drivers did not like that principle. It was also found that NASCAR had no efficient strategy for company interaction.
NASCAR generally utilized to rely on traditional media sources like regional paper for promotion of its sports. NASCAR also came to know from these standard media outlets that sport was challenging to cover. When sports fans were asked relating to popular celebs and stars then NASCAR driver was not found even in leading twenty reactions.
Threats in SWOT analysis are defined as external factors that can danger to business's success. Because if there is financial down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be risk for NASCAR. Earning of individuals would be effected and they would be more conscious in spending their cash. Economic down turn likewise results in increase fuel costs which also affected NASCAR. Because fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for earnings circulation. 65 percent earnings from media rights would be distributed to race tracks, 25 percent earnings would be dispersed to completing team and remaining 10 percent would be retained by NESCAR which is sanctioning body. Completing team wanted to increase their part of earnings from 25 percent because of increase in operating cost of a race team and also there is decrease in the variety of full-season sponsorship. NESCAR also deals with risks from other sponsors since they are making massive investments to enhance experience of fans. Which consists of updating existing avenues, developing brand-new opportunities, providing Wi-Fi center and also supplying other interactive mediums to engage sports on mobile phones. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational commitment. The obstacle is that the family system in America was changing resulting in decrease of influence of married male fan base over their youngsters. In addition to it perceptions about cars and truck was likewise changing with viewing cars and truck a car to reach at point B from point A, instead of as a fun task. If NASCAR make substantial investments in new sectors which are based on new customers then it might face unfavorable comments from its core fan base, now.
Porter's Five Forces Analysis
It is important to understand industry in which company is working due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are utilized to recognize success, strength and appearance of NASCAR organisation.
These drivers can go against NASCAR if they got better chance in terms of prizes and television exposure. If viewers take pleasure in other race vehicles and chauffeurs more than NASCAR then viewers can shift to those other interesting cars and motorists. NASCAR might be having hazard from its two direct competitors that is Solution 1 and Moto GP.
If business shifts from one supplier to another, the provider power indicates the number of providers are available in industry and what is the expense associated with provider. Since chauffeurs with needed resources and abilities are restricted, in this industry there is supply monopoly.
This force is regarding to consumers that is it simple for clients to shift to other items. If there is more changing cost is associated then customers are less likely to switch. When it comes to NASCAR clients are its audiences. Audiences can switch to other rivals easily since viewers will having low switching expense.
Danger of Substitution
Alternatives are referred as options. The substitutes in this case can be other home entertainment means like audiences can shift to other sports. So there are large range of alternatives are offered in this scenario which recommends that danger of alternative is high.
Risk of New Entry
It is defined as how it is easy for any business to go into in that particular industry. In the case of Color Kinetics Inc B Case Study Analysis danger of new entry is low. Since if any company requires to enter in this organisation than they need to make heavy investments. They require to construct vehicles and racing tracks and also needs to pay significant total up to motorists for switching.
As NASCAR is working in different markets so it requires to face different policies. It is also noted that NASCAR has actually dealt with increased examination regarding regulative. Every federal government has different priority so NASCAR has to be prepared for it as concern can be shifted to other sector.
Financial elements consists of taxation rate, exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize abilities of staff members to create new chances and enhance existing chances.
Every society is different from each other. Each has various social values and standards. It helps in understanding concerning society and choice of clients. Social factors consists of traditions, culture, mindsets towards specific services and products, demographics, standards, interests and so on. It can be concluded that marketing through other ways rather than conventional (i.e. newspaper) can be chosen in this society.
Technology has impact on practically every service. It includes innovation in organisation technique. In this case of Color Kinetics Inc B Case Study Analysis it can be kept in mind that business are heavily investing for research and advancement. NASCAR ought to also deal with its media rights policy with Turner Broadcasting System.
Since every nation has various legal terms and conditions, Legal plays a crucial role in every country. Color Kinetics Inc B Case Study Analysis needs to be ensure that they secure their legal rights in every county so any company does not damage to its legal rights.
Environmental factors are also crucial for every single business. Because generally federal governments don't permit those company which can hurt to environment. These environmental elements includes laws regarding pollution, climate modification, safe garbage disposal, policies regarding insurance and so on. NASCAR requires to ensure that its cars are not producing pollution more than acceptable level.
7 P's of Marketing
The items of Color Kinetics Inc B Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices method of NASCAR for its race events tickets is based upon the venue and importance of the racing occasions. Together with race occasions tickets, NASCAR also charge different service fees to its stakeholders and makes revenue. For instance it charged approving charges of $1-2 million per race on average in 2005.
Marketing method of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in various cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to understand nationwide popularity.
Nestle people strategy is comprised of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important element of Color Kinetics Inc B Case Study Analysis A marketing method as its events are the source of entertainment for crowd. Its people technique consists of efforts to provide better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals strategy of NASCAR.
Numerous service procedures are needed to carry out racing occasions in an effective method. These procedures include; proper schedule of time, arrangement for spectators, offering tickets, plan of area for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.
Crucial physical proofs for the NASCAR consists of the presence of its racing tracks, stock automobiles and racing events. Together with it, its retailing brands including tee shirts, caps, goodies and so on, also serve as a physical proof for NASCAR.
Product Life Cycle Assessment.
The racing events by Color Kinetics Inc B Case Study Solution was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competition for NASCAR was low, as the rivals drove the cars similar to the vehicles driven by regular people.
The first NASCAR based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on television in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a new period of rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having vast array of earnings sources. The business has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.
The decline in the company's offerings began after 2005 with typical participation rate per race declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major causes of decrease consist of the financial crisis of 2008, which increased the expense of reaching tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market segmentation of Color Kinetics Inc B Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Color Kinetics Inc B Case Help is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in numerous nations. The company has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division offers the company regional in addition to international fan base.
The demographic segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its present fan base is majorly comprised of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the group section of its market NASCAR ought to revise its marketing methods to attract more age and lower its prices to go into in the market sector with a low typical income.( htt1).
NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to buy tickets and see the races once in a week. NASCAR has tried to increase the quality of its racing by presenting phase racing, they likewise have tried to lower costs and make the occasion more convenient by presenting live racing.
Behavioural segmentation of Color Kinetics Inc B Case Study Help is based upon the behaviour of fans in terms of enjoying the race reside on the television or by going in the events. Presently, the fans choice is towards seeing the race in your home on tv rather than going, as the customer experience at NASCAR tracks is not favourable in addition to pricey. This choice makes the rates for participation lower than the rates for television viewers. NASCAR has to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has great prospective for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are likewise one of the prospective target market sector for NASCAR, as they are more connected socially than other groups. Automobile racing video games established by Color Kinetics Inc B Case Study Solution can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and enhancing its digital features to bring in the kids target market.
Generation Y target market consists of those who invested five times more resources on discretionary expenditures i.e. acquiring tickets for racing occasions, than others. This substantial expenditure makes the section potential for NASCAR marketing technique of increasing its fan base. The market section is likewise simple to approach as 81% of the Y Generation customer utilizes Facebook the use and every day is twice of utilizing television and radio. The marketplace segment views sports as an affair, rather than adherence to sport. The market segment considers NASCAR as a company lacking in creating a multiculturalism atmosphere. Color Kinetics Inc B Case Study Help needs to take different actions to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking choices relating to marketing. These 5 C's requirements to be evaluated correctly for taking any marketing choice. These 5 C's mean Climate, Company, Collaborators, Rivals and customers.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, environmental and legal and is stated above.
NASCAR is a car racing business with having USP of high quality car racing with a global structure. Its sector is sports team and events. Its target market is males in the age group of 15-60 years. Business has actually closed business culture and having non-interventionist approach.
Collaborations includes distributors, providers and alliances of Color Kinetics Inc B Case Study Solution. It is teamed up with various racing groups which are participating in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot during race at track.
The client of Color Kinetics Inc B Case Study Analysis are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational commitment.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of marketing is drivers. Therefore it can be said that drivers and race cars are competitors. These motorists can break Color Kinetics Inc B Case Study Solution if they improved chance in terms of prizes and tv exposure.
1. Maintaining and developing Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population sector of USA but sadly NASCAR had been not able to bring in the this targeted sector. It ought to develop a Facebook page consisting of the info relating to the races and the places of tracks to make the customer useful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Display). The significant factor behind it is that, the racers mainly play in teams and are unable to construct a key account and maintain a close contact with fans. The poor contacts with fans lead to less tourist attraction of viewers towards the racers and a low star power. Star power is an important aspect for drawing in audiences towards tracks and towards tv. The star power for the drivers at NASCARA might be enhanced by developing and upgrading accounts of essential drivers by NASCARA itself. This would remove the requirement of requiring motorists to maintain their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and improving current video games for kids.
Kids invested the majority of their time on playing video games and using mobile phones. However sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less drawn in towards the sport. In order to attract these kids, NASCARA ought to improve its existing racing games by introducing personalization in the cars and trucks i.e. altering colours, choice of speed, introducing group racing in the game, utilizing better graphics related to the racing tracks and presenting different levels in the video game. All these adjustments in the current game would supply much better experience to kids.
Along with it, NASCAR must likewise develop new games related to racing like kids racing with kids characters as drivers, cartoon racing with racing in between various animation characters with a choice of selecting the preferred cartoon character for the kids. These techniques would make it possible for the business to attract one of its possible target sections.
4. Presenting multiculturalism at events.
Color Kinetics Inc B Case Study Solution occasions are comprised of fans with very couple of multiculturalism, due to cost of arrival in occasions, making it unappealing for the consumers viewing sport occasions as get-togethers i.e. Generation Y clients. As the Generation Y consumers are a prospective target market for NASCAR, therefore the business ought to take specific procedures to attract this prospective target market. It should adopt techniques to draw in the consumers far from the tracks location with various culture. The technique to do so could be supplying special discounts on tickets or complimentary tickets to audiences coming from a particular range or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more satisfied.
5. Improving Consumer Experience at Tracks.
Due to the fact that on the race day audiences got dissatisfied, NASCAR needs to work on infrastructure and amenities at tracks. Viewers have many expectations from NASCAR because in very same market other business are offering better services than NASCAR. IF NASCAR don't work on this problem then its fans may moved to its competitors. According to fans there were not appropriate centers were offered as compare to other sports providers. So NASCAR must make sure that it supply adequate facilities that consists of cleaned up washrooms, comfy seating arrangement. They ought to also provide WIFI services and accessibility of credit cards throughout that track. It ought to be likewise make certain that there are enough jumbo turns positioned at all required locations. There must be likewise food stalls that supply quality food to audiences. In this method viewers will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Spending plan
Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the cost related data for the marketing methods. (See Appendix B). It can be seen that strategy 5 of enhancing client experience at tracks would require highest preliminary financial investment and expense and method 4 of introducing multiculturalism will need least expensive preliminary investment with least expensive further annually cost. The company ought to focus on the resource allotment on these strategies on the basis of its offered resources and the prospective advantages which the method would supply.
KEEP IN MIND: The worths about expense are assumed on logical basis due the absence of figures and realities connected to cost in the event research study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the external and internal aspects of Color Kinetics Inc B Case Study Solution triggering the decline of television viewership rate and participation rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These techniques would deal with internal factors like bad client experience at tracks, inadequate social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external aspects like moving of fans towards other sports, demographical modifications in America and altering family life styles.